Private markets across the U.K. and Europe are shifting into a phase of “selective growth,” according to new data from Gen II Fund Services’ Core Alternative Managers’ Mood Index (CAMMI). 

The headline CAMMI score eased modestly to 54.56 from 56.48. While still firmly above the 50 threshold that signals growth, the slight decline reflects a market that remains constructive but increasingly disciplined in capital deployment. 

The report notes that the shift “suggests a stabilizing market where managers remain confident in private market allocations but anticipate a more measured pace of commitment growth.” 

Among asset classes, growth capital remains one of the strongest areas of expected allocation growth with a CAMMI score of 60.40. Nearly half of managers (46%) expect allocations to increase, while 28% anticipate no change and 26% expect decreases. 

Buyout sentiment has weakened significantly, falling to 45.21 from 56.45 as higher financing costs, valuation gaps and slower exits weigh on expectations. Only 27% of managers expect allocations to increase, while 36% foresee reductions. 

Venture capital remains in growth territory at 54.80 but has cooled from earlier highs as managers navigate tighter valuation discipline and slower liquidity cycles. 

Secondaries, however, emerged as the standout strategy. The segment surged to a CAMMI score of 62.24 — the highest among all asset classes — reflecting strong demand for liquidity solutions as distributions slow. 

“Looking across the asset classes, what we’re seeing is a market getting smarter,” said Michael Johnson, chief commercial officer at Gen II. “In our view, this is exactly what a healthy, maturing private markets ecosystem should look like – capital is still flowing, but GPs are expecting it to flow selectively into the most attractive opportunities.”